The global cellular IoT market was valued at USD 4.80 billion in 2023 and grew at a CAGR of 20% from 2024 to 2033. The market is expected to reach USD 29.72 billion by 2033. The increasing demand for smart homes and offices will drive the growth of the global cellular IoT market. Cellular IoT devices refer to those connected to cellular networks. These gadgets are designed with inherent connectivity features, providing expanded availability and minimizing the need for auxiliary infrastructure while enabling long-range communication. Additionally, cellular IoT technology can achieve LPWAN applications.

Cellular IoT is an ideal solution for business-related applications as it can cater to the intricate and specific requirements of complex environments while also meeting the fundamental needs of a large-scale internet-of-things market. The two main types of cellular IoT are Long long-term evolution for Machines (LTE-M) and the Internet of Things (NB-IoT). LTE-M and NB-IoT offer considerable prospects in various application areas, such as smart cities, precision agriculture, fleet monitoring, and vending machines, which require secure communication over extensive distances.

Market Introduction:

Most cell phones, smartphones, and dial-up devices are connected to the internet via the cellular network. It is a wireless network that uses a radio antenna. Physical objects or things integrated with sensors, software, and other technologies are called the Internet of Things (IoT). The purpose is to enable communication and data sharing with other devices and systems. When this communication and data exchange happens on a cellular network, it is called cellular IoT. The Internet of Things (IoT) is functional with cellular technology used for smartphones. Cellular IoT enables remote monitoring and control of devices. It is a cost-effective and accessible technology. Smart appliances, smart cards, smart cities, and security systems are all examples of cellular IoT in action. Cellular IoT also allows Flexibility in deployment. It offers better coverage and is reliable. Technological advancements ensure privacy, safety and security. It is easy to install, operate and maintain.

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Recent Development

• July 2023 - Soracom, a global virtual IoT network operator owned by KDDI, recently announced a cooperation with Skylo Technologies, a cellular-IoT satellite operator based in the US.
• August 2023 - Sequans Communications, a top inventor in 5G and 4G cellular Internet of Things (IoT) chips and modules, will be acquired by Renesas Electronics, according to the company's announcement. The strategic move intends to strengthen Renesas' position in the expanding IoT sector and broaden its connectivity product offerings. Sequans Communications is valued at $249 million in the acquisition agreement. Renesas aims to maximize the potential of IoT technology across various applications by incorporating Sequans' cutting-edge cellular connectivity solutions and intellectual property into its core product lineup, which includes microcontrollers, microprocessors, analogue, and mixed-signal front ends. The relocation will facilitate Renesas' foray into the Wide Area Network (WAN) market, which will accommodate various data rate needs.

Market Dynamics:

Drivers

The increasing fiscal expenditure towards smart city development projects – smart cities are automated and digitized urban agglomerates that use technology like IoT devices to collect data for efficient city administration to offer high-quality and seamless public utilities. IoT devices enable smart infrastructure, waste management, transportation, governance and other utilities in a smart city. IoT is a crucial aspect of a smart city project. The increasing fiscal expenditure to develop smart cities to meet the needs of the growing urban population and improve quality of life will propel the cellular IoT market. The increasing demand for smart homes and offices from individuals and commercial establishments will also propel the market's growth.

Restraints:

Data privacy and security concerns – the IoT devices market has grown exponentially, and the adoption of these devices has been fast-paced. However, the regulations governing the manufacture, collection, storage and exchange of data have lagged, creating avenues for private market players to exploit consumers. IoT devices' highly automated, digitized, and online nature increases the risk of cyberattacks, raising concerns over consumers' safety, security and privacy. Data security and safety concerns alienate a significant proportion of the population from adopting IoT devices, which will limit the market's growth.

Opportunities:

The improving cellular network coverage – the favourable initiatives of the government and private players to improve cellular network coverage to offer data accessibility to remote corners of the world has played a positive role in the global cellular IoT market's growth. Furthermore, the telecom industry reforms have decreased data connectivity prices, making it more affordable for a larger audience and opening up new market avenues for cellular IoT devices. The increasing ownership of smart connected devices and digitization of global economies will contribute significantly to the growth of the cellular IoT market. The introduction of NB-IoT designed primarily for IoT devices is an example of the growing innovation in the sector, which will offer lucrative opportunities for the market's development.

• April 2023 - An NB-IoT chipset was unveiled by Renesas Electronics Corporation, a leading provider of cutting-edge semiconductor technologies for the Indian market. The brand-new RH1NS200 is an LTE NB-IoT modem chipset that is made to perform without a hitch on the networks of all significant Indian telecom providers. It is the perfect solution for the Indian smart metering market, which is predicted to reach 250 million units1 during the following five years, according to certain estimations. Customers can use it to construct full NB-IoT modules to meet "Make in India" standards. Numerous applications, including asset tracking, lighting, security, and others, can use the new chipset. The RH1NS200 chipset considerably increases battery life with its incredibly low power consumption of just 1uA while in deep sleep mode.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the most significant global cellular IoT market, with a 42.1% market revenue share in 2023.

The increasing fiscal expenditure on the development of smart cities will significantly contribute to the regional market's growth. Furthermore, the increasing disposable income contributes to the rising demand for smart homes and offices, augmenting the market's growth. The increasing demand for smart cars and the growing adoption of smart mobility solutions will contribute to the market's growth. The rising push for better connectivity through improved regulations and the rollout of positive government schemes for wider cellular network coverage will bode well for the market. Furthermore, the growing automation and digitization, driven by government authorities, will propel the market's growth.

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• August 2023 - By connecting more than 20 million devices with its Internet of Things (IoT) solutions, Airtel Business, the B2B branch of Bharti Airtel, becomes India's first ICT service provider. With secure private networks for data transmission, Airtel's IoT solutions serve a variety of industries, including the automotive, energy, utilities, logistics, and manufacturing ones.

Component type Segment Analysis

The component type segment is divided into hardware, software and services. The hardware segment dominated the market, with a market share of 48.1% in 2023. Hardware describes the physical components of IoT devices and the machinery that allows them to carry out their main activities. IoT hardware refers to the observable parts and objects that enable connectivity. Smart gadgets, sensors, chips, and cables are a few examples of IoT hardware. IoT sensors are the most significant component of IoT devices and contribute to the segment's dominance in the market.

• July 2023 - With a 42% market share and 30% growth across nine of the world's top ten important regions, Qualcomm lead the mobile IoT chipset market. PC, router/CPE, and industrial were the top three uses for 5G during the quarter, with China serving as the primary market for cellular IoT module chipset consumption. With a focus on premium 4G and 5G solutions for industries including retail, automotive, industrial robots, and smart cities, Qualcomm has been expanding the range of IoT chipsets it offers. Additionally, it is working with several industry application and technology suppliers, including Microsoft, ZTE, BMW, and Bosch, to concentrate on the 5G AIoT segment, also known as the high-value artificial intelligence and 5G IoT segment.

Technology Segment Analysis

The technology segment is divided into 2G, 3G, 4G, 5G, LTE-M, NB-LTE-M, and NB-IoT. The NB-IoT segment dominated, with a market share of 36.2% in 2023. Many new IoT devices and services are based on NB-IoT, a low-power wide area network. NB-IoT offers effective bandwidth utilization, prolonged battery life, and dependable connectivity. It is also cost-effective, reliable and secure. It has various applications in multiple industries, from industrial and automotive to healthcare and retail. It also can offer remote area connectivity in isolated rural regions or countryside. Furthermore, NB-IoT allows multiple connections or devices without comprising communication or functions. Low cost and low power consumption are selling points for this technology.

• March 2023 - New X300 Compact Gateway IoT Solution from Lantronix Inc. The new X300 Cellular Compact IoT Gateway Solution from Lantronix combines IoT gateway hardware with a premium services subscription, including centralized device management, integrated cellular data, enhanced device security, and expert technical support in a single package, making it ideal for secure mission-critical applications. To successfully implement IoT solutions, Lantronix is dedicated to offering customers turnkey IoT solutions that effectively address their connection and remote device management concerns.

Application Segment Analysis

The application segment is divided into agriculture, manufacturing, environment, energy and utilities, retail, healthcare, industrial, automotive and transportation, smart cities, consumer electricals, and others. The automotive and transportation segment dominated, with a market share of 26.5% in 2023. The rising demand for smart vehicles and smart urban transportation solutions will drive market growth. IoT devices in cars gather and evaluate information about the physical and mental health of the driver, allowing for the identification of driving patterns and affecting road safety. Similarly, Smart sensors have enabled organizations to efficiently track assets, plan traffic flows, and improve logistical operations in the logistics and transportation sector. Fleet managers can track fuel consumption, plan routes more efficiently, and schedule repairs using IoT devices. IoT devices can improve efficiency, production, and safety in the automotive industry, contributing to the sector's growth.

• July 2023 - Cavli Wireless (Cavli), a participant in the cellular IoT ecosystem, closed a USD 10 million Series A investment from international investors. Chiratae Ventures and Qualcomm Ventures took the lead in the funding round. Cavli creates and produces cellular modules with integrated eSIM and global connection in 4G and 5G technologies. The startup provides IoT solutions to goods manufacturers in more than 30 nations. The company can solidify its position in the IoT industry by broadening its product offering, strengthening its R&D capabilities, and extending its global presence. Cavli wants to invest in cutting-edge technologies like 5G with edge processing capabilities to address the worldwide automotive and industrial sectors.

Some of the Key Market Players:

• Ericsson AB
• Gemalto NV
• Mediatek Inc.
• Qualcomm Incorporated
• Sequans Communication
• Sierra Wireless
• Telit Communications PLC
• Texas Instruments Incorporated
• U–Blox Holding AG
• ZTE Corporation

Report Description: